"Boss Mei's 21 billion yuan will be used by Yixing Media Group to promote the layout of theater chains." Fang Hong gave the arrangements directly and neatly, looked at Hua Yu and added: "The advancement of theater chains It is best to combine it with real estate, and promote the commercial real estate under Huayang Group together, so that they can complement each other."
Hua Yu thought for a while and couldn't help but asked curiously: "Combining with real estate? Do you want to follow Wanda's route model?"
After hearing Fang Hong's arrangement, Hua Yu immediately thought of Wanda Plaza and Wanda Cinema.
Wanda obtained money through commercial real estate. At first, it never thought about running a cinema chain on its own. Instead, it found Time Warner in North America as a partner, and established Warner Wanda Cinemas in 2004.
But in the past year alone, Wanda found that cooperation was not working, and simply went it alone, so Wanda Cinema was established. From then on, Wanda Cinema opened wherever Wanda Plaza opened.
Fang Hong nodded and said, "That's right. Wherever Huayang Real Estate does it, the cinema chain company under Yixing Media will advance. After the shopping mall is built, it needs the supporting facilities of the cinema. The supporting facilities of the cinema, especially the multiplex cinema, can enrich the commercial plaza. business diversity.”
After a moment of pause, Fang Hong continued: "The popularity of the movie can increase the rent of your commercial plaza under Huayang Real Estate. If you, Huayang, offer a lower rent to Yixing Cinema and give you an internal price alone, it can be greatly reduced." The difficulty and risk of operating a movie theater.”
Hearing this, Hua Yu couldn't help but nodded in approval.
This is a win-win situation. Everyone gets something. It’s not about who takes advantage of the other, but they complement each other and make the cake bigger.
Wanda first tried this method of opening cinemas through real estate. After mastering it, other real estate giants also followed suit. Several leading theater chain companies in the mainland have the support of real estate tycoons.
Fang Hong said slowly: "Judging from Wanda's development in the past five years, the biggest contribution of real estate companies in operating theaters is to accelerate the transformation from single-room to multiple-room theaters. For the audience, the benefits of multiple-room theaters are There are many choices, and the intervals between shows are short, so you can watch them at any time. Watching movies is no longer a ritual, but has become a daily entertainment.”
"For movie theaters, the cost of each screen becomes lower after being evenly amortized, and more audiences gather. With more audiences, there are more ways to make money, such as selling popcorn, selling derivatives, catching dolls, and drawing blinds. Hehe even opened small supermarkets in the sales hall, which is one of the important factors why Wanda opened Wanda cinemas wherever the plaza opened."
Huayang Real Estate took this route and gave special discounts on rents to theaters owned by Yixing Media. Fang Hong did not take advantage, because Huayang's commercial real estate did not lose money, but made more money.
The entire commercial plaza is not just a movie theater, but because the movie theater brings a huge flow of people, it indirectly drives other surrounding businesses. When it becomes popular, it will definitely attract more people to open stores, and the rent of the stores will naturally increase.
Hua Yu immediately said: "I will convey your intention to my father later. I believe he will agree."
I will definitely agree.
But Hua Yu did not give Fang Hong a direct reply at this time. Although Hua Yongming's attitude was very clear, the process still had to be gone through in order to reflect the independence of Huayang Group. After all, Huayang Group was not a subsidiary of Qunxing Capital. company.
Fang Hong gave instructions while thinking about it: "The theater chain under Yixing Media should be dominated by 3D digital cinemas. A cinema has 6 screening rooms, of which 3D screens should account for 4."
Hua Yu nodded to himself and said: "Speaking of the 3D movie market, it is indeed a huge profit. In September last year, the mainland introduced the first commercial 3D movie "Journey to the Center of the Earth" to be released. It only relied on a 3D screen of less than 100 yuan. It has a box office record of more than 60 million yuan."
Obviously, Hua Yu himself also supports Yixing Media's theater chain to promote 3D cinemas. At present, there are only more than 200 3D screens in the country, which is very stretched.
In fact, theater investors have gradually realized the huge market potential in the supply and demand relationship of 3D movies: the queuing audiences outside the theater and the "ticket-seeking" posts online have made the nascent 3D movie market suddenly enter a period of huge profits.
Fang Hong, who has the advantage of foresight, knows better. Just as James Cameron predicted, 2009 will become the first year of 3D movies. In this year, "Monsters vs. Aliens", "Ice Age" 3", "Up" and other 3D movies were released one after another.
Especially after "Avatar", which Cameron has been working on for ten years, was released in North America in December this year, it set off a craze for 3D movie viewing around the world. It also set off a craze for movie viewing in the Greater China market. "Avatar" became a popular movie in mainland China. The first movie on the market to have a box office of over 1 billion, shocking the industry.
As a new thing, 3D movies have stimulated the desire of domestic audiences to "try new things". A large number of audiences go to the cinema for the name of 3D. During this period, even super bad movies can still sell well with magnificent scenes and 3D blessings. It fully reflects that making money should be done as early as possible.
At the moment, there are very few 3D screens, with only more than 200 3D screens.
However, the current growth rate of 3D screens is very fast, outpacing the overall growth rate of box office and screens in the movie market.
From 82 3D screens in September 2007, it reached 110 3D screens in December 2008, and now it has reached more than 200 3D screens.
The original theater investment companies in the industry are already discussing including the purchase of 3D projects into the list of regular projection equipment purchases, and increasing the proportion of 3D cinemas in medium and long-term planning.
Fang Hong knows that the 3D movie craze that started in the second half of this year, especially after the release of "Avatar", can be said to be fierce and has caught many people in the industry off guard.
For a time, major theater chains purchased equipment and launched 3D cinema projects. Inspired by the phenomenon of "queuing up to watch 3D", some outside capital also plunged into the theater investment industry, becoming an indispensable factor in promoting 3D screens and even the number of theater chains. The power of underestimation.
In particular, the release of "Avatar" set off a new round of craze in the 3D cinema investment market. In Fang Hong's past life memory, a vivid metaphor is that the difficulty of buying a 3D movie ticket for "Avatar" at that time was already more than The difficulty of purchasing a Spring Festival train ticket.
Even so, audiences are often willing to spend a few more hours queuing, or waiting in the online reservation system for the 3D movie three weeks later, rather than settle for the 2D version of "Avatar" in the theater.
Since the release of "Avatar", if a theater does not have a 3D theater, people will always feel that there is something missing.
But at this time, Fang Hong, who was sitting in the office rest area, drank a glass of water, and then said in an orderly manner: "There are currently more than two hundred 3D screens nationwide, and Yixing Media's entry is not a small matter. "Avatar" "The North American premiere of this movie is scheduled for December, and the Greater China market should be scheduled for early January next year. I am optimistic about this movie, and even more optimistic about the future mainstream trend of 3D cinemas."
Speaking of this, Fang Hong looked at Hua Yu and added: "The 3D cinema project cycle is short, and the threshold is not very high. Let Yixing Media bring capital into the project, M&A, upgrade, in short, accelerate the integration of theater resources , to reach more than 1,000 3D screens before Avatar is released, I am referring to the number of screens owned by Yixing Media, not the national market."
If Fang Hong wants to lay out the entire entertainment industry chain, the growth rate of 3D cinemas in the mainland market will inevitably increase sharply, far exceeding the market size in the previous life. Unsurprisingly, after the release of "Avatar" in this life in the mainland, more movies will be released. With the support of the number of 3D screens, its mainland box office market size is expected to exceed 1.3 billion in Fang Hong's previous life, and will definitely reach 1.5 billion.
Hua Yu nodded: "Understood."
After the more than 20 billion yuan of funds from coal boss Li Yongzhi arrives, Yixing Media can start to expand. The advancement of its cinema chain companies, specifically the construction of cinemas in various places, is mainly divided into two directions.
One is to directly establish a project to build a movie theater with full investment, and the other is to cooperate with other small owners who want to open movie theaters.
If a small local owner wants to open a movie theater, he must first choose a theater chain to join, and the theater chain will provide movies and complete business license and other procedures.
Then the cinema chain company will occupy about 30% of the equity of this cinema. If the small boss does not have enough funds of his own and the cinema chain helps advance the capital, the cinema chain will have more equity in the cinema.
The second is the venue. The cost of the venue is also settled with the equity of the cinema, which generally accounts for about 8 to 10% of the equity of the cinema. Calculating the capital cost of a cinema based on a multi-functional cinema with 6 screening halls, it will cost about 5 million.
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